The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

Part 1 of the Local Government Act 2003 (“the 2003 Act”) introduced a legal framework within which local government may undertake capital expenditure. In Wales, the Welsh Ministers may regulate that activity by regulations. Such provision was made by the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003 (S.I. 2003/3239) (“the 2003 Regulations”) which have been amended by the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2007 (S.I. 2007/1051 (W.108)) (“the 2007 Regulations”) and the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2010 (S.I. 2010/685 (W.67) (“the 2010 Regulations”).

These Regulations further amend the 2003 Regulations (as amended) and apply in relation to local authorities in Wales.

Regulation 3 amends regulation 18 of the 2003 Regulations to permit local authorities to use capital receipts received on or after 1 April 2013 to make back payments in respect of equal pay. For the purposes of these Regulations and the 2003 Regulations, equal pay is the amount of pay which an employee of a local authority is entitled to in comparison to another employee in the same establishment doing equal work, for periods wholly relating to before 1 October 2010, in accordance with section 1 of the Equal Pay Act 1970 (c.41).

The 2007 Regulations inserted regulation 24A into the 2003 Regulations. Regulation 24A was amended by the 2010 Regulations. The 2010 Regulations provided that regulation 24A ceased to have effect on 1 April 2013. Regulation 4 of these Regulations inserts a new regulation 24A into the 2003 Regulations, which will cease to have effect on 1 April 2018. The new regulation 24A provides that a local authority need not charge to a revenue account an amount in respect of a payment to be made to an officer or employee for work done in the past for which the officer or employee received unequal pay until the authority has to pay that amount to the officer or employee. It also provides that where a liability is identified on or before 1 April 2018, the benefit of regulation 24A will apply until 1 April 2023.

The Welsh Ministers’ Regulatory Impact Assessment Code for Subordinate Legislation has been considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of these Regulations. A copy can be obtained from the Local Government Finance Division, Cathays Park, Cardiff, CF10 3NQ (telephone [phone]).

An Equality Impact Assessment has been prepared in accordance with regulation 8 of the Equality Act 2010 (Statutory Duties) (Wales) Regulations 2011 (S.I. 2011/1064) in relation these Regulations. A copy can be obtained from the Local Government Finance Division, Cathays Park, Cardiff, CF10 3NQ (telephone [phone]).